The US Dollar declined against the Ringgit on Friday and is now trading at 4.3850. The data from the US ADP Nonfarm Employment Change came in higher than expected (235k real versus 150k forecast) and this could strengthen the dollar a bit. The ADP is seen as a preview of the Non-Farm Payroll as it measures private sector job creation over the previous month. Still, investors are more concerned about the release of Non-Farm Payrolls data to be released tomorrow, which measures the health of the job market in the economy as a whole. The market expectation is that the NFP report will show the creation of 200k new jobs in the USA during the month of December and that the unemployment rate will remain at 3.7%. If the data comes in line with expectations, it is possible that the USD will fall further against the Ringgit, as this will mean that the US job market is recovering, and softer monetary policies can be adopted throughout 2023. From a technical point of view, USDMYR up to the 4.2500 region, where it may find temporary support.
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© 2019 High Leverage FX - All Rights Reserved.